I’m no expert so take what i’m saying here with a big grain of salt.
first thing first: you don’t setup the mortgage as a fixed asset, you setup the property as a fixed asset. there’s a big difference.
i’m assuming your question is actually “what is the point of the fixed asset account?” and the answer is: so you can track CapEx and depreciation. when you setup the property as a fixed assert you may want to split that into building and land as sub accounts. you can depreciate the building but you can’t depreciate the land, so if you want to track the depreciation you need the split.
so your fixed asset balance is not changed by the mortgage payments (what you said that the amount is the same at the end of the year) since paying the mortage down does not changes in any way the value of the asset. is just changing your long term liabilities
hope this makes sense
